Car dealers are expecting the recession to last another two years, it has been claimed.

According to a new research by accountancy firm Baker Tilly, some three-quarters of dealers fear the recession will be much more protracted than recent forecasts have shown.

A number of factors have been blamed for the bleak outlook, including the end of the government’s scrappage scheme, the return to a 17.5 per cent VAT rate and general scepticism in the sector over the rate of the upturn.

Janet Hamblin, a partner at Baker Tilly, told the Scotsman: "As smaller dealers focus on used car sales over the next two years, I hope additional disappointment isn’t generated by false expectations for the end of the recession."

"Scrappage has certainly helped but going forward it will be challenging for some dealerships," she added.

Peter Cooke, professor of automotive management at Buckingham University, recently claimed that dealers need to change their business models if they are to thrive during the impending upturn.

Please share your thoughts

You must be logged in to post a comment.